Compound Interest when Interest is Compounded Yearly

We will learn how to use the formula for calculating the
compound interest when interest is compounded yearly.

Computation of compound interest by using growing principal
becomes lengthy and complicated when the period is long. If the rate of
interest is annual and the interest is compounded annually then in such cases
we use the following formula for compound interest.

If the principal = P, rate of interest per unit time = r %,
number of units of time = n, the amount = A and the compound interest = CI